Impact of Alternative Tariff Rates on Military Airlift Command Revenues.

摘要

This thesis investigated the relationship between Airlift Services Industrial Fund (ASIF) tariff rates and the resulting demand for Military Aircraft Command (MAC) services in regard to channel airlift. Emphasis was placed on the economic theory of price elasticity of demand to estimate what effect different tariff rates could have on total revenue. The analysis was accomplished using a multiple regression model and historical data from the period 1976 to 1983, inclusive. Both linear and a log/log variation of the model were used to establish the relationship between the price of MAC aircraft and the actual ton-miles of cargo transported by air. This relationship was found to be inelastic up to a five percent increase in the 1983 real tariff rate. Once the estimated demand curve was established, conclusions on the continued use of current ASIF policy were discussed in light of the increase in organic capability MAC is expecting to experience in the next fifteen years.